DETROIT (AP) – Fiat Chrysler says it will sink $1.5 billion into a suburban Detroit factory as it retools plants to make more trucks and SUVs and stops producing small and midsize cars.
With the investment, the company will equip the Sterling Heights, Michigan, Assembly Plant so it can make Ram pickup trucks. The plant currently makes the Chrysler 200 midsize car, but that production will end in December.
Fiat Chrysler says the investment hinges on formal approval of incentives by state and local governments.
CEO Sergio Marchionne has said the company wants to find a partner to build small cars, but spokeswoman Jodi Tinson says FCA has nothing to announce at present.
The investment is part of a series of moves to increase Jeep and Ram production.